ORCO PROPERTY GROUP S.A. (the “Company”) informs that on 24 September 2014 it entered into an agreement
for the subscription of 65,957,446 new ordinary shares (the “New Shares”) to be issued by CPI PROPERTY GROUP
(“CPI PG”) at the subscription price of EUR 0.47 per share, which is approximately 12% below the current market price
of EUR 0.53. The Company paid an aggregate subscription price of EUR 30,999,999.62 and the New Shares were
issued by CPI PG today.
Following this share issue the Company’s direct shareholding in CPI PG increased from 2.80% represented by
81,644,192 shares to 4.94% represented by 147,601,638 shares in CPI PG. In addition, the Company’s subsidiary
Brilliant 1419 GmbH & Co. Verwaltungs KG holds 11,531,259 shares in CPI PG representing 0.39% of CPI PG
shareholding. As such, the aggregate direct and indirect shareholding of the Company in CPI PG amounts to 5.33%
as of today.
In June 2014 the Company disposed of 108.4 million shares of CPI PG for a total consideration of EUR 55 million in
order to obtain funds to facilitate orderly disposal of its Zlota 44 project in Warsaw. The Company now used part of
the Zlota 44 proceeds to re-acquire some of CPI PG shares at more favorable terms. The Company is of the opinion
that subscription of the New Shares represents a safe investment with a potential and return.
To ensure the liquidity for satisfaction of its future liabilities, the Company and Mr. Radovan Vitek entered into a put
option agreement concerning the disposal of the New Shares. Pursuant to the terms of the put option agreement the
Company has right to request Mr. Vitek, major shareholder of CPI PG, to purchase the New Shares, or their portion,
upon a written request of the Company. The put option price payable by Mr. Vitek to the Company is EUR 0.47 per
share plus 6% p.a. interest from today until the exercise of the put option. The Company is not limited by the put option
agreement to dispose of the New Shares to a third party and/or on a market. The put option agreement is valid for 2
years.
For more information visit www.orcogroup.com